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A Contingency Fee Agreement lets you hire a lawyer without paying upfront legal fees. Instead, your lawyer only gets paid if they win your case, typically taking a percentage of the money you receive. In New Zealand, these agreements are common for personal injury claims, employment disputes, and civil litigation.

Under NZ law, lawyers must clearly spell out their success fee percentage, explain all costs, and follow strict professional rules about fair pricing. This payment structure helps people who couldn't otherwise afford legal help to access justice, though it's not allowed for criminal or family court cases in New Zealand.

Consider a Contingency Fee Agreement when you have a strong legal claim but lack the funds to pay lawyer fees upfront. These agreements work especially well for employment disputes, personal injury cases, or commercial litigation where you're seeking monetary compensation in New Zealand courts.

The arrangement makes sense if your case has good chances of success and involves a significant potential payout. Many Kiwi law firms offer this option for claims over $20,000, particularly in situations involving workplace accidents, unfair dismissals, or contract disputes. Just remember that some matters, like criminal defense or family court proceedings, can't use contingency arrangements under NZ law.

• Fixed percentage agreements: Most common type, where lawyers take 20-33% of the settlement amount, with higher percentages for complex cases or appeals
• Sliding scale arrangements: Fee percentage changes based on case progress - lower if settled early, higher if it goes to trial
• Mixed fee structures: Combines reduced hourly rates with a smaller contingency percentage
• Capped contingency agreements: Sets maximum fee limits to protect clients from excessive charges on large settlements
• Disbursement-exclusive contracts: Clients pay ongoing case expenses while the lawyer's fee remains contingent on success

• Law Firms: Draft and offer these agreements, especially firms specializing in civil litigation, employment law, or personal injury cases
• Individual Clients: People seeking legal help without upfront costs, typically for personal injury claims or employment disputes
• Business Clients: Companies pursuing commercial litigation or contract disputes who prefer to minimize upfront legal costs
• Legal Practice Managers: Review and ensure agreements comply with NZ Law Society rules and professional standards
• Court Officials: May review fee arrangements when approving settlements or awarding costs

• Case Assessment: Document the nature of the legal claim, estimated value, and likelihood of success
• Fee Structure: Determine your percentage rate based on case complexity and expected settlement timeline
• Cost Details: List all potential disbursements and specify who covers ongoing expenses
• Client Information: Gather complete contact details and any relevant case documentation
• Success Terms: Define what constitutes a successful outcome and when payment becomes due
• Compliance Check: Ensure agreement follows NZ Law Society rules for contingency arrangements

• Client Details: Full names, contact information, and legal capacity of all parties involved
• Scope Definition: Clear description of legal services covered and specific case details
• Fee Structure: Exact percentage rates, calculation method, and payment timing
• Cost Allocation: Who pays for court fees, expert witnesses, and other disbursements
• Termination Rights: Conditions for ending the agreement and calculating fees owed
• Success Definition: Precise criteria for what constitutes a successful outcome
• Client Acknowledgment: Statement confirming understanding of fee arrangement terms

A Contingency Fee Agreement differs significantly from a standard Fee Agreement in several key ways. While both govern legal payment terms, their structures and purposes serve different needs in the NZ legal system.

• Payment Timing: Contingency fees are paid only upon successful case resolution, while standard fee agreements require regular payments regardless of outcome
• Risk Distribution: Contingency arrangements shift financial risk to the lawyer, whereas fee agreements place payment obligation solely on the client
• Fee Calculation: Contingency fees are percentage-based on recovery amount, while standard fees typically use hourly rates or fixed sums
• Case Types: Contingency arrangements work mainly for monetary claims, while fee agreements suit all legal services, including family law and criminal defense
• Client Access: Contingency options help clients who can't afford upfront legal costs, whereas standard fee agreements assume immediate payment ability